Hey folks,
Been digging deep into RSI divergence lately, particularly on the lower timeframes (15m, 30m) for quick scalps. While everyone talks about daily or 4-hour divergence for bigger moves, I'm finding some interesting opportunities on these shorter frames that seem to get overlooked.
Specifically, I'm looking for hidden bullish divergence on the 15-minute chart after a sharp pullback in an established uptrend. The idea is that while price makes a slightly lower low, the RSI fails to make a corresponding lower low, indicating underlying strength is still present and the pullback might be ending soon. It's a bit like catching a falling knife, but with a specific confirmation signal.
For example, I saw this play out on SOL/USDT yesterday. Price dipped from $185 to $178, but the 15m RSI held above its previous low around the 40 mark. I entered a small long position with a tight stop-loss just below the recent low, targeting a quick retest of the $185 level. It worked out for a nice 3-4% gain in under an hour.
My question to the community is: Has anyone else had success or notable failures using RSI divergence on sub-hour timeframes? Are there specific indicators you pair with it to filter out the noise? I've been thinking about adding MACD crossover confirmation, but I'm worried about lagging signals on such short frames.
What are your go-to advanced charting tools or strategies for short-term trading? Always keen to learn from the masters here!